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Maya owns a business which offers outdoor services including guided hikes and kayaking lessons. Demand for her services fluctuate depending on the season. The busy-season

Maya owns a business which offers outdoor services including guided hikes and kayaking lessons. Demand for her services fluctuate depending on the season. The busy-season (warmer weather) lasts for approximately 9 months each year. During the busy-season the market price for her services average $60/hour while in the off-season it is only $35/hour. Her average total cost is $40/hour and average variable cost is $30/hour. Which of the following is true?

She should exit the market because she makes negative profits.

She should shut down during the off-season since her average total cost is greater than price.

She should shut down during the off-season since her price is less than average variable cost.

None of the above

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